Time Shares Law

Question 1

NRS 119A.010 Definitions

Answer 1

As used in this chapter, unless the context otherwise requries, the words and terms defined in NRS 119A.020 to 119A.160, inclusive, have the meanings ascribed to them in those sections. (Added to NRS by 1983,977; A 1985, 1137; A 1991,96; 1999, 2688; 2001, 2499)

Question 2

NRS 119A.020 “Administrator” defined

Answer 2

“Administrator” means the Real Estate Administrator. (Added to NRS by 1983,977)

Question 3

NRS 119A.030  “Affiliate of the developer” defined. 

Answer 3

“Affiliate of the developer” means any person who controls, is controlled by or is under common control with a developer, including a person who:
1.  Is a general partner, officer, director or employer of the developer;
2.  Directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with the power to vote, or holds proxies representing more than 20 percent of the voting interest in the developer;
3.  Controls the election of a majority of the directors of the developer; or
4.  Has contributed more than 20 percent of the capital of the developer.
(Added to NRS by 1983, 977; A 2001, 2499)

Question 4

NRS 119A.031  “Affiliate of the manager” defined.

Answer 4

“Affiliate of the manager” means any person who controls, is controlled by or is under common control with a manager, including a person who:
1.  Is a general partner, officer, director or employer of the manager;
2.  Directly or indirectly or acting in concert with one or more persons, or through one or more subsidiaries, owns, controls, or holds with the power to vote more than 20 percent of the voting interest in the manager;
3.  Controls the election of a majority of the directors of the manager; or
4.  Has contributed more than 20 percent of the capital of the manager.
(Added to NRS by 2001, 2494)

Question 5

NRS 119A.032  “Association” defined.

Answer 5

 “Association” means an association of owners established pursuant to NRS 119A.520.
(Added to NRS by 2001, 2494)

Question 6

NRS 119A.033  “Blanket encumbrance” defined.

Answer 6

“Blanket encumbrance” means any mortgage, deed of trust, option to purchase, mechanic’s lien, vendor’s lien or interest under a contract or agreement for sale, judgment lien, federal or state tax lien or other lien or encumbrance which secures or evidences an obligation to pay money or to sell or convey any property made available to purchasers by the developer or any portion thereof and which authorizes, permits or requires the foreclosure or other disposition of the property affected. The term does not include a lien for taxes or assessments levied by any public authority which are not due.
(Added to NRS by 1985, 1134)

Question 7

NRS 119A.034  “Board” defined.

Answer 7

 “Board” means the governing body designated in a time-share instrument to act on behalf of an association.
(Added to NRS by 2001, 2494)

Question 8

NRS 119A.036  “Common area” defined.  

Answer 8

 “Common area” means those portions of a project other than the units. The term includes any easement which benefits the project.
(Added to NRS by 2001, 2494)

Question 9

NRS 119A.040  “Developer” defined.

Answer 9

 “Developer” means any person who:
1.  Creates a time-share plan or is in the business of selling time shares, other than those employees or agents of the developer who sell time shares on the developer’s behalf; or
2.  Succeeds to the interest of a developer by sale, lease, assignment, mortgage or other transfer.
Ê The term includes only those persons who offer time shares for disposition in the ordinary course of business.
(Added to NRS by 1983, 977; A 2013, 1581)

Question 10

NRS 119A.041  “Developer’s reserved rights” defined. 

Answer 10

“Developer’s reserved rights” means any right reserved in a time-share instrument for the benefit of the developer, the exercise of which does not require a vote of the other owners.
(Added to NRS by 2001, 2495)

Question 11

NRS 119A.050  “Division” defined.

Answer 11

“Division” means the Real Estate Division of the Department of Business and Industry.
(Added to NRS by 1983, 977; A 1993, 1510)

Question 12

NRS 119A.052  “Limited common area” defined.

Answer 12

 “Limited common area” means a portion of the common area allocated by a time-share instrument for the exclusive use of at least one, but not all, of the units in a project.
(Added to NRS by 2001, 2495)

Question 13

NRS 119A.054  “Manager” defined. 

Answer 13

 “Manager” means a person who undertakes, directly or indirectly, the duties, responsibilities and obligations of managing, in whole or in part, a time-share plan or a project, or both, in accordance with an agreement entered into pursuant to NRS 119A.530.
(Added to NRS by 2001, 2495)

Question 14

NRS 119A.056  “Owner” defined. 

Answer 14

 “Owner” means a person, including a developer, who has an equitable or legal interest in a time share. The term does not include a person who has an interest in a time share solely as security for an obligation.
(Added to NRS by 1991, 96; A 2001, 2499)

Question 15

NRS 119A.058  “Permanent identifying number” defined.

Answer 15

 “Permanent identifying number” means a series of numbers or letters, or any combination thereof, which identifies, for the duration of a time-share plan, one time share in the plan.
(Added to NRS by 2001, 2495)

Question 16

NRS 119A.060  “Permit” defined. 

Answer 16

“Permit” means the authorization issued by the Administrator pursuant to the provisions of this chapter to a developer to offer to sell or sell time shares.
(Added to NRS by 1983, 977)

Question 17

NRS 119A.070  “Person” defined. 

Answer 17

“Person” includes a government, a governmental agency and a political subdivision of a government.
(Added to NRS by 1983, 977; A 1985, 508)

Question 18

NRS 119A.080  “Project” defined.

Answer 18

 “Project” means the real property which, in whole or in part, is the subject of a time-share plan.
(Added to NRS by 1983, 977; A 1985, 1137; 2001, 2499)

Question 19

NRS 119A.090  “Project broker” defined.

Answer 19

  “Project broker” means any person who coordinates the sale of time shares for one or more time-share plans on behalf of one or more developers and who is licensed as a real estate broker pursuant to the provisions of chapter 645 of NRS.
(Added to NRS by 1983, 977; A 2001, 2499; 2013, 1581, 3510)

Question 20

NRS 119A.100  “Public offering statement” defined. 

Answer 20

 “Public offering statement” means a disclosure document prepared and signed by the developer and approved or deemed approved for use by the Division pursuant to the provisions of this chapter, which contains the information required by this chapter and any regulations adopted pursuant thereto.
(Added to NRS by 1983, 977; A 2001, 2499; 2013, 1581, 3510)

Question 21

NRS 119A.110  “Purchaser” defined.

Answer 21

“Purchaser” means any person, other than the developer or lender, who purchases a time share.
(Added to NRS by 1983, 978)

Question 22

NRS 119A.120  “Representative” defined.

Answer 22

 “Representative” means a person who is not a sales agent and who, on behalf of a developer, induces other persons to attend a sales presentation. The term does not include a person who only performs clerical tasks, arranges appointments set up by others or prepares or distributes promotional materials.
(Added to NRS by 1983, 978)

Question 23

NRS 119A.130  “Sales agent” defined.

Answer 23

“Sales agent” means a person who, on behalf of a developer and under the direct supervision of a person licensed pursuant to the provisions of chapter 645 of NRS, sells or offers to sell a time share to a purchaser or who, if he or she is not registered as a representative, may act to induce other persons to attend a sales presentation on the behalf of a developer.
(Added to NRS by 1983, 978; A 2005, 1297; 2013, 1582, 3510)

Question 24

NRS 119A.140  “Time share” defined. 

Answer 24

“Time share” means the right to use and occupy a unit on a recurrent periodic basis according to an arrangement allocating this right among various owners whether or not there is an additional charge to the owner for occupying the unit.
(Added to NRS by 1983, 978; A 1985, 1137; 2001, 2499)

Question 25

NRS 119A.150  “Time-share instrument” defined. 

Answer 25

 “Time-share instrument” means any document creating or regulating time shares, excluding any law, ordinance or governmental regulation.
(Added to NRS by 1983, 978)

Question 26

NRS 119A.152  “Time-share plan” defined. 

Answer 26

“Time-share plan” means the rights to time shares and the obligations and interests appurtenant thereto created by a time-share instrument.
(Added to NRS by 2001, 2495)

Question 27

NRS 119A.153  “Time-share resale” defined. 

Answer 27

“Time-share resale” means the sale or transfer of a time share that was previously sold to a purchaser.
(Added to NRS by 1999, 2686)

Question 28

NRS 119A.156  “Time-share resale broker” defined. 

Answer 28

 “Time-share resale broker” means a person who is licensed pursuant to chapter 645 of NRS and is registered as a time-share resale broker pursuant to the provisions of this chapter and who, for compensation, lists, advertises, transfers, assists in transferring, promotes for resale or solicits prospective purchasers of previously sold time shares, on behalf of an owner other than a developer.
(Added to NRS by 1999, 2686; A 2013, 1582, 3510)

Question 29

NRS 119A.160  “Unit” defined.

Answer 29

 “Unit” means that portion of a project which is designated for separate occupancy.
(Added to NRS by 1983, 978; A 2001, 2500)

Question 30

NRS 119A.170  Applicability of this chapter and chapter 645 of NRS.

Answer 30

1.  Unless the method of disposition is adopted to evade the provisions of this chapter or chapter 645 of NRS, the provisions of this chapter, except subsection 4, do not apply to:
(a) The sale of 12 or fewer time shares in a time-share plan;
(b) The sale or transfer of a time share by an owner who is not the developer, unless the time share is sold in the ordinary course of business of that owner;
(c) Any transfer of a time share:
(1) By deed in lieu of foreclosure;
(2) At a foreclosure sale; or
(3) By the resale of a time share by an association that has been acquired by that association:
(I) By termination of a contractual right of occupancy;
(II) By deed in lieu of foreclosure, other transfer or termination; or
(III) At a foreclosure sale,
Ê provided that the association or its agent delivers to the purchaser the disclosures required by subsections 2 and 3 of NRS 119A.4775 and gives the purchaser the statement of the right of cancellation required by NRS 119A.410;
(d) A gratuitous transfer of a time share;
(e) A transfer by devise or descent or a transfer to an inter vivos trust; or
(f) The sale or transfer of the right to use and occupy a unit on a periodic basis which recurs over a period of less than 5 years.
2.  Any campground or developer who is subject to the requirements of chapter 119B of NRS and complies with those provisions is not required to comply with the provisions of this chapter.
3.  The Division may waive any provision of this chapter if it finds that the enforcement of that provision is not necessary in the public interest or for the protection of purchasers.
4.  The provisions of chapter 645 of NRS apply to the sale of time shares, except any sale of a time share to which this chapter applies and except any provisions of this chapter expressly excluding the applicability of the provisions of chapter 645 of NRS, and for the purpose of applying the provisions of chapter 645 of NRS, the terms “real property” and “real estate” as used in chapter 645 of NRS shall be deemed to include a time share, whether it is an interest in real property or merely a contractual right to occupancy.
(Added to NRS by 1983, 978; A 1985, 1137; 1991, 96; 2001, 2500; 2013, 1582, 3510)

Question 31

NRS 119A.172  Applicability of provisions relating to real estate brokers and sales agents to certain owners who refer prospective purchasers to developer or association or to employee or agent of developer or association.

Answer 31

The provisions of this chapter and chapter 645 of NRS relating to real estate brokers and sales agents do not apply to an owner, other than a developer, who, for compensation, refers prospective purchasers to a developer or an association or an employee or agent of the developer or association, if the owner:
1.  Refers to a developer or an association or an employee or agent of the developer or association, or any combination thereof, not more than 20 prospective purchasers within any 1 calendar year; and
2.  Does not discuss with the prospective purchaser the terms and conditions of the purchase or otherwise participate in negotiations relating to the sale of the time share.
(Added to NRS by 2001, 2495; A 2013, 3511)

Question 32

NRS 119A.174  Applicability of local ordinances, regulations and building codes.

Answer 32

1.  A building code may not impose any requirements upon any structure in a project which it would not impose upon a physically identical development under a different form of ownership.
2.  Except as otherwise provided in subsection 1, the provisions of this chapter do not invalidate or modify any provision of any building code or zoning, subdivision or other law, ordinance, rule or regulation governing the use of real estate.
(Added to NRS by 2001, 2495)

Question 33

NRS 119A.180  Classification of interest of purchaser.  

Answer 33

1.  A purchaser shall not be deemed to hold an investment contract, nor shall his or her purchase be considered risk capital, because income derived from the project and any personal property available for use by the purchaser in conjunction therewith reduces the assessment for time-share expenses, if the income inures directly to the benefit of the association and not to his or her direct benefit.
2.  An interest in a time share is not a security under the provisions of chapter 90 of NRS.
(Added to NRS by 1983, 991; A 2001, 2500)

Question 34

NRS 119A.190  Regulations; professional consultants; publication of proposed form before adoption and consideration of comments.

Answer 34

1.  The Division may:
(a) Adopt regulations:
(1) Which are necessary to carry out the provisions of this chapter.
(2) Regarding the content of advertisements relating to time shares.
(b) Employ such legal counsel, investigators and other professional consultants as are necessary to carry out the provisions of this chapter, including, without limitation, for the review of a statement of record filed pursuant to NRS 119A.300 or 119A.302.
2.  The Division shall publish on its official Internet website, or otherwise make public for at least 30 days before the adoption by the Division, any form proposed to be used by the Division under this chapter. The Division shall consider comments on any such proposed form before its adoption.
(Added to NRS by 1983, 978; A 2013, 3511)

Question 35

NRS 119A.195  Authority for Division to conduct business electronically; regulations; fees; use of unsworn declaration; exclusions.

Answer 35

1.  The Administrator may adopt regulations which establish procedures for the Division to conduct business electronically pursuant to title 59 of NRS with persons who are regulated pursuant to this chapter and with any other persons with whom the Division conducts business. The regulations may include, without limitation, the establishment of fees to pay the costs of conducting business electronically with the Division.
2.  In addition to the process authorized by NRS 719.280, if the Division is conducting business electronically with a person and a law requires a signature or record to be notarized, acknowledged, verified or made under oath, the Division may allow the person to substitute a declaration that complies with the provisions of NRS 53.045 or NRS 53.250 to 53.390, inclusive, to satisfy the legal requirement.
3.  The Division may refuse to conduct business electronically with a person who has failed to pay money which the person owes to the Division.
(Added to NRS by 2003, 1306; A 2011, 16)

Question 36

NRS 119A.200  Limitation on licensing by local governments.

Answer 36

Time shares, time-share plans and projects to which this chapter applies are subject to licensing by local governments for revenue but not for regulation.
(Added to NRS by 1983, 996; A 2001, 2500)